Scottish Power plc ("ScottishPower") today announced proposals for the creation of a new holding company for the ScottishPower group ("New ScottishPower"). 

ScottishPower believes this restructuring will assist the regulatory processes associated with the planned merger with PacifiCorp.

Subject to shareholder approval, a new holding company will be incorporated to formalise the separation between the parent, the existing trading activities of the group and PacifiCorp.  The new company will be named Scottish Power plc and the existing company will be renamed Scottish Power UK plc.

These changes, expected to take effect in June, are in line with the position held by both the UK and US Federal regulatory authorities who favour the corporate structure of a "non-trading" legal entity above the trading businesses.  The proposals are not conditional on the merger, nor is the merger conditional on the proposal.

ScottishPower Chief Executive Ian Robinson said:  "In view of the proposed PacifiCorp merger and the range of UK businesses that we now have, ScottishPower
has decided that the creation of a holding company provides the most effective structure for the group".

Further Information:
Sue Clark,                  Director of Corporate Affairs              0141 636 4561
Colin McSeveny,             Group Media Relations                   0141 636 4515

Note to Editors:

1. The new group holding company will be inserted above ScottishPower by way of a scheme of arrangement, and will be renamed Scottish Power plc.  In place of their shares in ScottishPower, shareholders will receive the same number of shares, economic interest and voting rights in the new group holding company as they hold in ScottishPower on the record date for the proposals.
2. The proposal will require the sanction of the court, and the approval of ScottishPower shareholders at general meetings to be held in the Spring, on the same day as the general meeting to approve the proposed merger with PacifiCorp.
3. Subject to this, it is expected that the proposals will become effective in June 1999